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Construction Estimates: Why Your Bids Should Spell Everything Out

Posted by Norhalma Verzosa on Fri, Sep 26, 2025

As a contractor, you’ve likely had this experience: you deliver a job estimate to a client, they accept, and you get to work. Everything goes smoothly—until halfway through the project when the client says, “Wait, I thought this included the backsplash,” or “I assumed cleanup was part of the price.”

Suddenly, what you thought was a straightforward project turns into a debate about expectations. The client feels misled, you feel frustrated, and worst of all, your profit margin starts to shrink.

The root problem? The estimate wasn’t clear enough.

In construction, your estimate is more than just a number—it’s a roadmap. It tells your client what’s included, what’s not, and sets the financial foundation for your project. A vague or rushed estimate leads to misunderstandings, disputes, and, most importantly, lost profits.

As construction bookkeeping specialists, we’ve seen time and again that contractors who take the time to create precise, detailed estimates consistently run more profitable jobs. Let’s break down why your bids should spell everything out, and how doing so protects your bottom line.

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Topics: Estimates Vs. Actuals, Construction Bookkeeping And Accounting, Estimating Tips And Tricks, Construction Systems And Processes, estimates, Bidding in Construction

Quotes Vs. Estimates And Insights To Contract Negotiations

Posted by Sharie DeHart on Fri, Dec 06, 2019

The nature of some types of businesses makes it challenging to come up with a standard price list. For tradespeople and construction company owners like you, what's required in terms of time, skill, labor, and materials frequently vary from job to job.

Offering an estimate or quote provides potential clients with a customized figure for what they can expect to pay based on what will be required to complete a specific project.

Quotes

A quote is a legally binding fixed price a company prepares for a client; as such, they should always be in writing. A quote should summarize the work to be performed and include a detailed breakdown of all the costs and the final total, including taxes. 

Once a business offers a quote and a client signs off on it, the price cannot change even if the job ends up costing more than initially anticipated. For this reason, it's crucial to always quote as accurately as possible, allowing ample time to complete the job and carefully pricing out costs for materials and labor (e.g., subcontractors). 

To protect your business from "scope creep," a quote should also stipulate that additional charges for extra work beyond what the original quote covers will apply.

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Topics: Contractor, Contractor Tips, quotes, estimates

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